Beximco Pharma Regulatory News (BXP)

27 December 2017

BEXIMCO PHARMACEUTICALS LTD

Annual General Meeting Statement

Beximco Pharmaceuticals Limited ("Beximco Pharma", "BPL" or "the Company"; AIM Symbol: BXP), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces that all resolutions put before shareholders at the Company's Annual General Meeting ("AGM") held on 23 December 2017 were duly passed.

The resolutions passed at the AGM included the approval of a 12.5% cash dividend for the year ended on 30 June 2017. The cash dividend being 12.5% of the nominal value per ordinary share of Tk.10 (Tk. 1.25 per ordinary share/per global depository receipt ("GDR") held in respect of GDR holders) will be paid to holders of ordinary shares/GDRs (who were on the register of shareholders/GDR holders as on the date of record, i.e. 15 November 2017) on 18 January 2018. The cash dividend will be paid after deduction of taxes as per Bangladesh Tax law.

The Annual Report for 2016-17 is available from the Company's website, which includes the audited accounts that were previously sent to shareholders and a review of operations for the year ended on 30 June 2017.

During the course of the meeting, Vice Chairman of the Company, Salman F Rahman, made the following statement to shareholders:

Dear Shareholders,

Following a regulatory change made by the National Board of Revenue, Beximco Pharma has changed its accounting reference date from 31 December to 30 June. The twelve months to 30 June 2017 was our first full-year reporting since the change.

I am pleased to report another successful year for Beximco Pharma, both in our domestic and export markets, demonstrating our continued growth momentum. Upon review of our Annual Report, you will note that we have performed well in our operational and financial continuum with sales, net profit and earning per share strongly increasing from the comparable previous period.

We have accelerated growth in export sales, registering year-on-year growth of 25%, driven by our focus on increasing our presence in markets around the world. With the export of our first product to the US in August 2016, we began a new era for the pharmaceutical industry in Bangladesh. We continue to build our US portfolio, launching our second product in this important market in October 2017. Beximco Pharma remains the only Bangladeshi company to export pharmaceutical products to the US.

In September 2017, we commenced the export of our first product to Canada, marking the first time a pharmaceutical product manufactured in Bangladesh has been launched in this country.

During the reporting period, Beximco Pharma formed its first overseas joint venture with Malaysian-based BioCare Manufacturing (M) Sdn Bhd to set up a facility to produce specialised pharmaceutical products in Seri Iskandar Pharmaceuticals Park, Malaysia. Beximco Pharma will provide technical support to establish the facilities, as well as the technology to manufacture and produce products. Although no significant impact in the short term is expected on our earnings as a result of this joint venture, it is an important testimony of our technical capabilities as a generic manufacturer.

Additionally, as part of our strategy to diversify, expand and reinforce our domestic market position, we are exploring the acquisition of a local pharmaceutical company that would be a strategic fit for Beximco Pharma. A non-binding memorandum of understanding has been entered into for the acquisition of majority shares of Nuvista Pharmaceuticals, a Bangladeshi company specialising in hormone and steroid drugs.

As you know, we are making significant investment in our manufacturing facilities; our large scale physical infrastructure projects initiated to support the Company's current and future growth progress as planned. The human insulin facility, one of the projects under our product diversification initiative, has been completed and is expected to be commercially operational in the first half of 2018.

We performed well in the past year and I remain confident that we are taking the right actions to continue to grow and deliver results for you in the coming years. Our adopted strategies squarely fit with our goal to build Beximco Pharma as one of the fastest growing companies in the region with a strong presence in the global markets.

Finally, we have a highly dedicated and capable pool of employees. The achievements we have made to date have only been possible because of such a talented team. I thankfully acknowledge their contribution to the Company. We are also grateful to our shareholders for extending, at all times, their invaluable support and cooperation to bring Beximco Pharma to the level it has reached today.

Thank you

Salman F Rahman

Vice Chairman

For further information please visit www.beximco-pharma.com or enquire to:

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: +880 2 58611001, ext.20080

Md. Asad Ullah, FCS, Executive Director & Company Secretary

Tel: +880 2 58611891, +880 2 58612040, Ext 10140

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady / Andrew Emmott

Tel: +44 (0)20 3368 3551 / 3555

Northland Capital Partners Limited (Broker)

Gerry Beaney / Tom Price

Tel: +44 (0)20 3861 6626

FTI Consulting 

Simon Conway / Victoria Foster Mitchell

Tel: +44 (0)20 3727 1000

Notes to Editors

About Beximco Pharmaceuticals Limited

Founded in 1976 and based in Dhaka, Bangladesh, Beximco Pharma manufactures and sells generic pharmaceutical formulation products and active pharmaceutical ingredients. The Company also undertakes contract manufacturing for multinational and leading global generic pharmaceutical companies. The Company operates from a 23 acre site in Dhaka and has manufacturing facilities for producing various drugs in different delivery systems such as tablets, capsules, liquids, semi-solids, intravenous fluids, metered dose inhalers, dry powder inhalers, sterile ophthalmic drops, prefilled syringes, injectables, nebuliser solutions, oral soluble films etc. Ensuring access to quality medicines is the powerful aspiration that motivates 3,800 employees of the Company.

Beximco Pharma′s state-of-the-art manufacturing facilities are certified by global regulatory authorities of USA, Europe, Australia, Canada, GCC and Latin America, among others. The Company's products are sold to retail outlets, medical institutions and other pharmaceutical manufacturers in Bangladesh, in regional markets such as Sri Lanka, Nepal, Bhutan, Vietnam, Cambodia and Myanmar and in other markets overseas, principally in South East Asia, including Singapore, Thailand, Taiwan, Malaysia, Indonesia, Philippines and Hong Kong; Africa, including South Africa, Mauritius, Kenya, Ghana, Ethiopia, Uganda and Nigeria; Central Asia, including Azerbaijan; Middle East, including Kuwait and Jordan; Pacific Island countries; Latin and Central American countries; Europe, including Austria, Germany and Romania; Australia and North America, including the USA and Canada.